New U.S. tariffs and currency changes give Etsy makers an edge. Learn how to adjust pricing and win market share in Q2Spring season is in full swing - and so are some big economic shifts. Between fresh U.S. tariff updates and the USD currency exchange rate doing its own spring dance, global selling just got more interesting. But here's the good news: some of these changes may play in favor of real Etsy makers. Let’s break down what’s happening and how to make the most of it.
Tariffs, Exchange Rates & Is Handmade Getting Stronger?
Q1 was rather quiet on Etsy, but Q2 comes with important shifts in global trade - and while this spells out uncertainty for a lot of sellers, it may actually be giving real Etsy makers an edge. This month, we break down the situation around new U.S. tariffs and currency swings and how to stay ahead with smart pricing and a handmade advantage.
1. U.S. tariffs tighten for China and Hong Kong - But it’s a win for Etsy makers
Effective May 2nd, the U.S. has removed the $800 de minimis exemption for all goods imported from China and Hong Kong - which legalese aside, means even the smallest packages from China are now subject to tariffs. In combination with the announced up to 145% tariff level on Chinese goods, this is bad news for Chinese imports.
Now, here’s what matters to us.
First, as Etsy announced "de minimis exemptions are in place for goods entering the US, with the exception of items originating from China and Hong Kong, effective May 2. This means the vast majority of Etsy packages entering the US are not currently impacted."
Second, this weakens resellers and mass dropshippers:
- Platforms like Temu and Shein? Their ultra-cheap discount pricing just got hit;
- Dropshippers using Chinese fulfillment? Higher costs + slower delivery;
- You, the maker with quality, story and a handmade edge? You shine brighter :)
This shift clears both some noise from within the Etsy marketplace and can also free up some market share for Etsy from competitor platforms and Shopify-based dropshippers. Overall, uncertainty aside, this is a positive direction for most designer-maker brands outside of China.
2. European sellers - business as usual for now but it's time to review your pricing
For sellers in the EU and UK, the current U.S. rules still allow you to ship under the $800 de minimis threshold, meaning no tariffs for most Etsy orders - as long as you clearly mark country of origin and stay under the limit.
However, if your shop is set to EUR, we need to talk about the current exchange rate:
The USD to EUR exchange has been actively shifting over the last 4-8 weeks.
As Etsy customers are seeing everything in their local currency, this means some of your listings may look more expensive than intended for your US customers.
This is how US buyers were seeing a 139 EUR item on Etsy (based on Etsy's conversion rate) a couple of months ago and now:
Mid-February 139 EUR = $150 Early May 139 EUR = $165
If your store is in EUR, you've just increased your prices in the USA by around 10%. And if you’re crossing pricing sweet spots like $99 or $150, this can affect conversions.
What you can do:
- Check how your bestsellers appear in USD
- Adjust EUR prices or run temporary promotions to stay competitive in filtered searches
- If most of your buyers are in the U.S., consider switching to USD as your base currency
You don’t need to drop your value - just be aware of how you show up in search and incorporate this into your pricing strategy.
3. And remember - tariff regulations are still fluid right now
Global trade policy and currency exchange rates aren't carved in stone. And now this is more dynamic than ever, as these rules are shifting in real time with the trade negotiations that are currently in motion.
Tariffs, thresholds, and trade rules are all part of ongoing negotiations between governments, influenced by shifting alliances, economic pressure, and the big-picture supply chain strategies. What’s true today could be reshaped by next quarter.
That’s why agility is important. Long-term success is neither about over-reacting to changes or ignoring them - successful stores are the ones that are able to stay in the loop, follow along and adapt to take advantage of the current situation.
4. Final thoughts - this can be your market advantage
This moment? It can be good for you.
With platforms like Temu and Shein now facing friction at the border, buyers will be on the hunt for better, more reliable alternatives - and Etsy is high on that list. Over the next 1-2 months more shoppers may come exploring the marketplace and land on shops like yours.
While our SEO work helps funnel this new traffic your way, take 15-30 minutes this week to:
- Revisit your price points in USD - make sure you're staying competitive in search
- Set up your spring-summer promotions calendar to convert those first-time visitors
- Identify ways to fill the gap left by mass-made competitors - whether that’s faster shipping, deeper storytelling, or standout personalization.
While many sellers face changes with anxiety, this isn’t just a moment to survive - it’s one to own. With big-box competitors facing new hurdles and buyer behavior shifting, the door is open for top-tier sellers to step into the spotlight and grab this market share.
Especially with the coming Father's Day and Summer / Wedding season opportunities, if you position your shop strategically - through smart pricing, good promotions, and a clear value message - you won’t just ride the wave, you can certainly lead it.
